Economic developments over the last month have included sticky inflation, the fear of a wage-price spiral and a return of central banks hiking interest rates. These all weighed on public and private markets at the end of the second quarter.
The wholesale investment market was strong in 2022, with Partners Private assessing hundreds of opportunities and presenting clients with 8 new investments over the course of the year. These investments included property equity, private equity, mezzanine debt, preferred equity and property debt, and raised more than $105M in investment capital.
The current market environment for public and private investments is undergoing a period of change and volatility bringing both risk and opportunity. The main drivers of markets are the policy settings of central banks, governments, and the facilitation of loans by commercial banks, which determine the supply of money in the economy and financial system.
The current environment in markets continues to be very volatile and points towards more downside in both public and private investment markets, with key influences being rising inflation and geopolitical risks.
In this issue we consider past performance of alternatives and look at how they are used by other fund managers within the investment mix, and how to add them to your own portfolio.
Alternative assets are investments that do not fall under the classification of other commonly known asset classes like stocks, bonds and cash. Typically, this categorisation includes assets such as private equity, private debt, infrastructure, real estate, natural resources and hedge funds. Here we take a closer look at what each of these asset classes are.